Summary
- Gear Energy exited 2022 in a solid financial position with very little net debt.
- The 2023 guidance suggests CAD$31M in dividends to be paid entirely from Free cash flows in US$80+ per barrel WTI price environment.
- Management’s assumptions about the WCS spread may a bit optimistic, but the price differential should narrow by the end of 2023 as the Trans Mountain Pipeline is completed.
- Gear Energy seems like a good bet on shrinking WTI-WCS price differential as investors could be paid 11+% gross dividend yield while waiting for the spread to come down.
For further details see:
Gear Energy: 11+% Yielding Bet On Shrinking WTI-WCS Price Differential